For those whose Bishops Stortford flat is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold residencies in Bishops Stortford with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Skipton Building Society | |
| TSB | |
| Yorkshire Building Society |
Retaining our service gives you better control over the value of your Bishops Stortford leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Finley was the the leasehold owner of a conversion flat in Bishops Stortford being marketed with a lease of just over fifty eight years remaining. Finley on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Finley to exercise his statutory right. Finley procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last Winter we were phoned by Dr Charlie Kelly , who acquired a newly refurbished flat in Bishops Stortford in February 2008. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable properties in Bishops Stortford with a long lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease concluded in 2103. Considering the 77 years unexpired we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.
Last month we were approach by Dr O Robinson , who was assigned a lease of a basement apartment in Bishops Stortford in August 2007. The question was if we could approximate the premium would likely be to prolong the lease by an additional years. Similar residencies in Bishops Stortford with an extended lease were worth £183,600. The mid-range amount of ground rent was £65 invoiced per annum. The lease elapsed on 18 November 2083. Having 57 years remaining we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus legals.